Senators offers bill to nationalize California CO2 requirements

Senators offers bill to nationalize California CO2 requirements

Washington (Platts)--20Jul2006

US Senator Jim Jeffords, Independent-Vermont, on Thursday introduced
legislation that would nationalize California's carbon dioxide reductions and
require the US to get 20% of its electricity from renewable sources by 2020.

The Global Warming Pollution Reduction Act of 2006 would require that the
US cut its greenhouse gas emissions to 1990 levels between 2010 and 2020.
Beginning in 2030, gradual reductions would be further required to ultimately
slash emissions to 80% below 1990 levels by 2050.

The bill, cosponsored by Senator Barbara Boxer, Democrat-California, does
not require the Environmental Protection Agency to design an emissions
cap-and-trade program to reduce CO2. But if the agency chooses that approach,
EPA must consider a "declining cap with a technology-based stop price" to
ensure that industry continues to reduce its emissions rather than simply buys
CO2 emission allowances.

The bill mandates that all power plants built after 2012 achieve a
greenhouse gas emissions limit by 2016 that can be achieved by combined-cycle
natural gas turbine plants--an expected 60% reduction in these emissions. The
bill also seeks to mandate that 5% of electric generation be low-carbon by
2020.

Jeffords is set to retire from the Senate by year's end and Boxer would
take his seat as the ranking minority member on the Senate Environment and
Public Works Committee or as chair if the Senate leadership changes from
Republican to Democratic after elections in November.

Boxer said she envisioned the Jeffords bill--which was praised by Senate
Energy and Natural Resources Ranking Democrat Jeff Bingaman of New Mexico--as
a comprehensive bill that would get greater consideration under the next
Congress.

"Getting [the bill] through this Congress will be very difficult," Boxer
said.

At a news conference announcing Jeffords' bill, Bingaman, who has
shepherded a 20% renewable portfolio through the Senate only to see it fail in
the House, pledged to work for the goals of the bill, but said that he would
also continue his work with Senate Energy Committee Chairman Pete Domenici,
Republican-New Mexico, to address climate change.

"Regardless, I am encouraged that Senator Jeffords and other senators are
offering fresh ideas on how to slow, stop and reverse the greenhouse gas
emissions that cause global warming," Bingaman said.

For more news, request a free trial to Platts Electric Power Daily at
http://electricpowerdaily.platts.com or subscribe now at
http://www.platts.com/infostore/product_info.php?cPath=2_31&products_id=47

Please visit: www.platts.com

Their coverage of energy matters is extensive!!.